E-commerce firm Shopify reported a loss for the June quarter on Wednesday, while revenue and gross merchandise volume missed estimates. SHOP shares turned higher after the company’s earnings call with Wall Street analysts.
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Canada-based Shopify ( SHOP ) reported second-quarter earnings before the market opened. SHOP shares initially fell after the earnings release.
But Shopify shares rose 7% in morning trading after the stock market earnings call today. The e-commerce firm’s shares fell on Tuesday after it revealed plans to cut 10% of its workforce.
For the quarter ended June 30, Shopify said it lost 3 cents per share on an adjusted basis.
SHOP’s stock revenue rose 16% to $1.295 billion, the company said. Revenue growth slowed for a fifth consecutive quarter as the coronavirus pandemic subsided and online shopping returned to normal.
Shopify Stock: Light gross merchandise volume
Analysts had expected Shopify to earn 3 cents a share on revenue of $1.33 billion. A year earlier, Shopify earned 22 cents per share on revenue of $1.12 million.
Gross merchandise volume from merchant customers came in at $46.9 billion versus estimates of $48.84 billion.
“Second quarter results showed that trends are deteriorating even faster than expected,” Jefferies analyst Samad Samana said in a note to clients. “GMV of $46.9 billion missed estimates, leading to overall revenue misses. Missed profitability due to revenue shortfalls and increased costs.”
Shares of SHOP fell 14% on Tuesday. Shares of Shopify are down nearly 80% in 2022.
Sales of commercial solutions up 18%
In the June quarter, Shopify reported revenue from commerce solutions rose 18% to $929 million. Subscription revenue rose 10% to $366.4 million. Analysts had forecast commerce solutions revenue of $968.2 million and subscription solutions revenue of $361.6 million.
Shopify builds e-commerce websites for small businesses and partners with others to process digital payments and shipping.
The e-commerce firm on Tuesday said it would lay off approximately 1,000 employees, or 10% of its workforce.
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